Quick emergency checklist

  • Gather the IRS notice and note the date, notice type, and any contact number. The IRS puts the phone number on the notice — call that number right away. (See the IRS bank levy guidance.)IRS – Levies
  • Contact your bank immediately to confirm whether a levy has been served, whether funds are frozen, and the bank’s timeline for remitting funds.
  • If the notice is a “Notice of Intent to Levy,” request a Collection Due Process (CDP) hearing within 30 days (use Form 12153). This preserves appeal rights. IRS – Collection Due Process
  • Ask the IRS about emergency relief options: release for financial hardship, temporary hold, installment agreement, or an Offer in Compromise where appropriate.
  • If funds include exempt federal benefits (Social Security, SSI, VA, etc.), tell the IRS and your bank immediately and document the deposit sources. Exempt funds may be protected.
  • Contact a tax professional (CPA, enrolled agent, or tax attorney) to negotiate or file appeals on your behalf.

How the process typically unfolds — and why speed matters

When the IRS issues a levy, it serves the levy on a third-party holder (your bank). Most banks will freeze the account and must comply with the IRS instructions. That freeze can prevent you from accessing funds for payroll, rent, or groceries. In my practice, clients who call the IRS and the bank within hours often have better outcomes — sometimes preserving exempt deposits or negotiating a short delay to arrange payments.

Step-by-step actions (what to say and do)

  1. Preserve evidence. Take photos or scans of the IRS notice, recent bank statements, and proof of exempt deposits. Note the date and time you first learned of the levy.
  2. Call the IRS number on the notice. Ask for the examiner or the contact listed and explain your hardship. Ask whether the levy can be released while you pursue an alternative (installment agreement, currently not collectible status, or an Offer in Compromise). IRS levy and release options
  3. Contact the bank. Ask whether the bank has received a levy, whether funds are frozen, and when it plans to remit. Ask if the bank will accept a written claim of exempt funds and how to submit documentation.
  4. Request a hearing if eligible. A timely CDP request (usually within 30 days of a Notice of Intent to Levy) preserves appeal rights — complete Form 12153 and request Appeals review. IRS – CDP rights & Form 12153
  5. Pursue options to release the levy. Common remedies include entering an installment agreement, proving the levy creates economic hardship, or showing funds are exempt. If eligible, an Offer in Compromise may resolve the debt for less than the full amount. See our guide on offer-in-compromise options.

When to involve professionals and what they can do

  • Tax attorneys/CPAs/enrolled agents can communicate with the IRS on your behalf, prepare Appeals requests, and negotiate payment plans faster. In my experience, a qualified pro can often get a temporary hold while documentation is gathered.
  • If the levy appears wrongful (wrong taxpayer, already paid, or identity theft), an attorney can help file an administrative claim and, if needed, a suit for wrongful levy in federal court.

Common mistakes to avoid

  • Ignoring the notice. Silence is the biggest risk; the IRS can proceed and third parties must comply.
  • Moving funds to hide them. Intentionally concealing assets can lead to penalties. Work within the law and under advice from a professional.
  • Waiting too long to request a hearing — missing the 30-day CDP window can forfeit appeal rights.

Useful resources and further reading

Internal resources

Professional disclaimer
This content is educational and not individualized legal or tax advice. For personalized guidance, contact a qualified tax professional or attorney who can review your notices and represent you with the IRS.